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Bitcoin has been declared dead several times in his 10-year life; its recent fall has caused another obituary, but why is Bitcoin NOT dead?
A popular site called 99Bitcoins keeps an eye on the number of times Bitcoin has been declared dead in the mainstream media. Currently, it has accumulated 336 obituaries for the digital currency.
The last drop in the price of Bitcoin, which rose from $ 6,000 to nearly $ 3,000, sparked panic and capitulation, while many felt that cryptocurrency had its last days.
There were concerns about its usefulness and usefulness, as well as the potential for a so-called spiral of death in the mining of Bitcoin while many miners closed the shop. Still, Bitcoin continues to exist, and at the time of writing, it rebounded to over $ 4000.
So, what is it that keeps Bitcoin alive? He has no CEO, no headquarters and, because of his decentralized nature, he has no one to guide him to keep him alive; it is based exclusively on those interested in this.
The blockchain below
Bitcoins, or cryptocurrencies in general, have a very special relationship with their underlying technology, the blockchain. They are naturally employees of one from the other to operate, but they also move independently from one another in many respects.
Blockchain is advancing on a path quite different from that of Bitcoin, but it was the initial explosion of Bitcoin in the mainstream financial space that has led people to take the blockchain seriously.
Now that the bubble of the cryptocurrency has practically exploded, there is much less clamor and interest in it. However, blockchain, the technology behind everything, is having the chance to stand out and shine for its technological reasons alone.
For this reason, Bitcoin is still very relevant. The progression of the Blockchain is growing steadily, and in a solid way, and thanks to its adoption in all the centers, people still appreciate the usefulness of a digital token.
Bitcoin, like the main digital token that encapsulates all the main points of cryptocurrency and blockchain, such as decentralization and transparency and, of course, distribution, is the epitome of a functioning token economy.
Manageable extraction
Another reason why Bitcoin has never completely capitulated is due to its adjustment of difficulties in the mining sector. Many people feared that Bitcoin could go wrong if the miners, an important part of any proof-of-work cryptocurrency, decided to abandon Bitcoin because of the greater difficulty and loss of profitability.
In fact, when the price dropped significantly in November, many miners went out and even the hash rate decreased. But since Bitcoin has an integrated adjustment, the lower hashing rate has led to an increase in the extraction difficulty, and therefore has boosted profitability again, attracting the miners again.
With more mining mines, the blockchain has increased health and activity, which has led to greater interest and investment in the markets. This, in turn and in a compound way, then helps to increase the price and push the miners again, increasing the profit and the price again.
Spread the speculators
There is also a big difference between a speculative bubble burst and the death of a market. Some markets can be destroyed by the pop bubble, but in the case of Bitcoin, it reflects the dot com bubble because it has a similar nature.
With its blockchain underlying equa to the Internet, and the ICO clamor and other factors fair to Dot Com companies, it can be seen that this type of bubble burst is an opportunity for Bitcoin to throw its crazy speculative investors, and allow those who are serious and able to rebuild the market based on the important underlying technology.
Bitcoin will continue to be called dead, and mistakenly so because it has only hit the mainstream in the last 18 months or so.
However, if you want to reduce a bit, you would see that an investor who bought Bitcoin two years ago, rather than, say, a year ago, would still be over 300 percent of his investment.
